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Arch Resources Inc (ARCH) Stock Fundamental Analysis

USA - NYSE:ARCH - US03940R1077 - Common Stock

134.83 USD
+0.94 (+0.7%)
Last: 1/13/2025, 8:04:00 PM
133.13 USD
-1.7 (-1.26%)
After Hours: 1/13/2025, 8:04:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ARCH. ARCH was compared to 156 industry peers in the Metals & Mining industry. ARCH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARCH is valued quite cheap, but it does not seem to be growing. This makes ARCH very considerable for value investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

ARCH had positive earnings in the past year.
ARCH had a positive operating cash flow in the past year.
ARCH had positive earnings in 4 of the past 5 years.
ARCH had a positive operating cash flow in each of the past 5 years.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

1.2 Ratios

ARCH's Return On Assets of 7.57% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
The Return On Equity of ARCH (12.43%) is better than 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 8.85%, ARCH belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARCH is significantly above the industry average of 12.92%.
The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

With a decent Profit Margin value of 6.69%, ARCH is doing good in the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARCH has grown nicely.
Looking at the Operating Margin, with a value of 7.76%, ARCH is in the better half of the industry, outperforming 62.59% of the companies in the same industry.
ARCH's Operating Margin has improved in the last couple of years.
ARCH has a Gross Margin of 17.11%. This is comparable to the rest of the industry: ARCH outperforms 52.38% of its industry peers.
ARCH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARCH is creating value.
ARCH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARCH has been increased compared to 5 years ago.
ARCH has a better debt/assets ratio than last year.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.29, ARCH is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B

2.3 Liquidity

A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
ARCH's Current ratio of 2.01 is in line compared to the rest of the industry. ARCH outperforms 46.26% of its industry peers.
A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
ARCH has a Quick ratio (1.41) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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1

3. Growth

3.1 Past

The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
Measured over the past years, ARCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
Looking at the last year, ARCH shows a very negative growth in Revenue. The Revenue has decreased by -17.03% in the last year.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

The Earnings Per Share is expected to decrease by -5.93% on average over the next years.
Based on estimates for the next years, ARCH will show a decrease in Revenue. The Revenue will decrease by -7.19% on average per year.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.13, the valuation of ARCH can be described as correct.
79.59% of the companies in the same industry are more expensive than ARCH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. ARCH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.77, the valuation of ARCH can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaply inside the industry as 89.12% of the companies are valued more expensively.
ARCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARCH indicates a somewhat cheap valuation: ARCH is cheaper than 77.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 87.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

The excellent profitability rating of ARCH may justify a higher PE ratio.
ARCH's earnings are expected to decrease with -5.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
ARCH's Dividend Yield is a higher than the industry average which is at 2.51.
Compared to an average S&P500 Dividend Yield of 2.38, ARCH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ARCH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

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Arch Resources Inc

NYSE:ARCH (1/13/2025, 8:04:00 PM)

After market: 133.13 -1.7 (-1.26%)

134.83

+0.94 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners99.38%
Inst Owner Change-68.41%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
P/S 0.91
P/FCF 11.58
P/OCF 6.2
P/B 1.69
P/tB 1.69
EV/EBITDA 6.26
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Profitability
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROCE 10.52%
ROIC 8.85%
ROICexc 10.16%
ROICexgc 10.16%
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
FCFM 7.87%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Debt/EBITDA 0
Cap/Depr 117.1%
Cap/Sales 6.83%
Interest Coverage 250
Cash Conversion 108.14%
Profit Quality 117.55%
Current Ratio 2.01
Quick Ratio 1.41
Altman-Z 4.29
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%